During the year a company recognizes $100 of revenue it had previously collected in cash as deferred revenue. Tax rate 20%. Walk through the three statements.

Question

IBPrep · Accepted Answer

Income Statement: recognize $100 of revenue. Pretax +$100, tax +$20, Net Income +$80.

During the year a company recognizes $100 of revenue it had previously collected in cash as deferred revenue. Tax rate 20%. Walk through the three statements.

Answer

More Accounting interview questions

During the year a company